NEW DELHI: Indian Prime Minister Manmohan Singh on Wednesday offered Nepali counterpart Girija Prasad Koirala an aid package to help rebuild his country.

Analysts say the aid package is likely to include grants and soft loans worth millions of dollars to help rebuild infrastructure and schools wrecked by years of political instability and a Maoist insurgency.

Mr Koirala, 84, is leading efforts to rebuild the shattered country since being appointed in April, after weeks of street protests forced King Gyanendra to restore parliament and end direct rule.

After a meeting between the two leaders, officials said India was planning to provide support to its landlocked neighbour.

“India remains committed to give all support in undertaking infrastructure projects, capacity building projects which have to be determined as per the priorities of the Government of Nepal,” Anand Sharma, India’s junior foreign minister, told reporters after the meeting.

“This (meeting) has given us adequate information about their needs and requirements. The government of India will be working out a detailed package for Nepal which would be announced before the delegation returns,” he added.

Foreign ministry officials say India is keen to assist in both long- and short-term projects, including funding the construction of roads, bridges and railways links ravaged by the conflict.

India is a major donor to Nepal and supplies the bulk of essential commodities to its neighbour, whose economy — based on aid and tourism — was badly hit during the insurgency, in which more than 13,000 people were killed.

“The two countries are looking at ways of how India can help Nepal progress in various fields — this will be financially, militarily and democratically,” said S.D. Muni, professor of international relations at Delhi’s Jawaharlal Nehru University.

Analysts say India is also interested in the ongoing negotiations between the Kathmandu government and the Maoists which are aimed at disarming the rebels and bringing them into the political mainstream.—Reuters